 PM's compact heavy-duty 100SP crane |
Manitex International Inc has agreed to acquire Italian equipment maker PM-Group SpA for USD107 million.
Completion of the transaction, probably during the fourth quarter, will follow approval from an Italian court of a debt restructuring plan for the crane manufacturer in San Cesario sul Panaro in the Emilia-Romagna region of Italy.
PM-Group manufactures truck-mounted hydraulic knuckle boom cranes, with a product line including more than 50 models. PM-Group subsidiary Oil & Steel manufactures truck-mounted aerial platforms. Combined, the facilities of PM-Group and Oil & Steel have nearly 510,000 sqft. (229,500 sqm) of assembly and manufacturing space in San Cesario and also in Arad, which is in the Cri?ana and Banat regions of Romania.
"In PM-Group, we have again found an exceptional opportunity to add new branded product lines, enhance our earnings power and create value for our shareholders," says David Langevin, Manitex chairman and chief executive officer. "PM is a substantial company that has performed very well despite a depressed European economy and a very heavy debt load incurred from its 2008 LBO refinancing."
Langevin sees promise. "With the restructuring of its debt, which includes a reduction of more than USD65 million, and evidence of the beginnings of a European recovery, we believe that this is a very attractive acquisition for us from a financial standpoint. This acquisition also expands our product portfolio nicely, enabling us to offer our dealers both straight-mast and knuckle boom cranes, each with unique benefits, functionality and niche market applications."
The proposed Manitex payment includes USD24 million in cash provided by a new Manitex term loan with current Manitex bankers, USD15 million in new equity issuance of approximately 1 million Manitex shares for distribution primarily to current PM banks and USD68 million in assumed debt and liabilities, which include working capital facilities for PM.
PM-Group would be the second financially troubled European-based firm that Manitex has acquired. On 1 July 2011, after court and shareholder approvals, a Manitex subsidiary completed its acquisition of certain liquidated assets of
CVS SpA in Rovoleti di Cadeo, Italy. The subsidiary, CVS Ferrari srl, began using the assets of the container-handling-equipment operation in July 2010 under a rental agreement.
Publicly traded Bridgeview-based Manitex had profit of USD10.2 million on 2013 sales of USD245.1 million. Products include boom truck, telescopic, rough terrain and industrial cranes; reach stackers; container handling equipment; rough-terrain forklifts; mobile liquid and solid containment solutions; and specialised trailers and mission-oriented vehicles.